Why Rivian Stock Sank This Week
Key Points
Rivian expects a sharp rise in EV deliveries this year.
It will deploy its third-generation autonomy platform on the R2 later this year.
The stock of electric vehicle (EV) maker Rivian Automotive (NASDAQ: RIVN) rocketed higher after the company reported its fourth-quarter results on Feb. 12. This week, however, Rivian shares have crumbled.
The stock is nearly back to where it was before the earnings release, after dropping about 14% this week, according to data from S&P Global Market Intelligence. That's probably because investors know the company still has to execute.
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Image source: Rivian Automotive.
R2 or bust
That's probably investors' attitudes toward Rivian and its prospects. It might be literally true, too. Rivian expects its new R2 to have a larger market thanks to its lower price point compared to its R1 SUV. It also plans to showcase its latest industry-leading technology.
The company projects sales to increase by up to nearly 60% above 2025 levels at the high end of its guidance range. Rivian expects high consumer interest in the R2, which is expected to start at around $45,000.
Rivian is not counting solely on R2 sales. It will highlight its third-generation autonomy platform on the new model later this year. That technology will be used on future models, too. Rivian says it is "expected to have one of the most powerful combinations of sensors and inference compute in a consumer vehicle in North America when launched in R2 in late 2026."
That sounds promising, but after the initial post-earnings excitement, investors seem to be waiting to see if Rivian can now execute on its growth plans.
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Howard Smith has positions in Rivian Automotive. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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